In the previous session, gold had risen 0.7% while silver had gained 0.52%. On MCX, gold futures fell 0.9% to ₹51,306 per 10 gram while silver futures plunged 1.5% to ₹67970 per kg. Gold and silver prices in India have struggled for direction after hitting highs of ₹56,200 and ₹79,723 last month.
Elsewhere, silver dropped 0.4% to $26.81 per ounce, while palladium rose 0.3% to $2,299.95.
Silver will trade in a consolidative range with support at Rs 67,430-67,100 and resistance at Rs 68,900-69,350, said Motilal Oswal.
"Increasing challenges to global economy may increase gold's safe haven appeal while the U.S. central bank's dovish stance and concerns about U.S. economy may limit upside in the dollar, thereby supporting gold", he added.
Lagarde told reporters that the ECB Governing Council had also "carefully assessed" the appreciation of the euro against the dollar, given that it could impact inflation by lowering prices in the euro area.
"Gold prices would continue to climb up amidst the heightened liquidity, possible raise of inflation due to that and bloating fiscal deficits of governments putting additional stress on their currencies including United States dollar", said Navneet Damani, vice president, Motilal Oswal Financial Services. However, with the ECB showing apparent ease with the gains in the Euro and not wanting to engage in a currency war, the central bank may have just co-signed a another move towards 1.20, thus capping the recent advance in the greenback in the run-up to the Fed meeting.
Some policymakers also argued that paying shareholders would be inappropriate as banks benefitted from various public subsidies and guarantees so they could continue lending to the real economy.